Opportunities in international markets

After years of US market leadership, 2025 brought a notable turn as international equities outpaced the US, prompting investors to reassess global portfolio balance.

A weaker dollar and policy uncertainty in the US are improving relative returns abroad, while Japan’s rising rates may unwind long-standing carry trades and shift capital flows.

At the same time, Europe and Japan are deploying large-scale fiscal stimulus tied to defense and energy security, which could support growth in selected regions and sectors.

With US valuations still elevated versus many international markets, the current gap may offer a more attractive entry point for diversified investors heading into 2026.